A phased introduction of e-Invoicing is confirmed by the Inland Revenue Board (IRB) according to the 2023 Budget. It will come into effect gradually from early 2024 and will likely follow the Italian SDI model. The implementation dates shared by IRB are as follows:
- January 2024: Businesses will be able to implement e-invoicing voluntarily.
- June 2024: Mandatory implementation for businesses that reach a sales threshold value of MYR 100 million annually.
- January 2025: Mandatory implementation for businesses that reach a sales threshold value of MYR 50 million annually.
- January 2026: Mandatory implementation for businesses that reach a sales threshold value of MYR 25 million annually.
- January 2027: Mandatory implementation for all businesses.
Who will be under the scope?
The mandatory use of e-Invoicing covers B2G, B2B and B2C transactions. Furthermore, domestic and cross-border transactions can be included. Electronic invoices can be used by taxpayers voluntarily from January 2024. IRB will provide a free portal called myTax for taxpayers to issue and receive invoices manually. Starting from 2027, B2C transactions will follow the obligation and use e-Receipts. It is expected that B2C transactions will follow the real-time reporting model. The following documents will be under the scope of the regulation:
- credit and debit notes
- invoices
- receipts
- cancellations
Introduction of Centralized Continuous Transactions (CTC) in Malaysia
In this model, invoices and receipts are first sent to the tax authorities in real-time before the buyers for verification purposes. For the verification, a structured XML invoice file must be submitted to the IRB platform via API. After verification is done, the supplier will receive the XML invoice, which can then be sent to a trading party in any format or method. Buyers will be notified by the IRB for access to cleared invoices. Regarding the exchange of invoices with the buyers, PDFs and other paper forms can be used, but a QR code with a URL will still need to be displayed.
Hybrid Centralized Continuous Transaction
As planned, this model will include hybrid centralized Continuous Transaction Control (CTC), which is combined with the PEPPOL network. With this model, IRB will validate and approve invoices before they are sent to buyers. Once the invoice is approved IRB will generate a certified serial number and inform the issuer and the receiver by email. Taxpayers will be able to choose PEPPOL as an exchange method among the other enabled channels. When PEPPOL is not used, the integrated and automated electronic exchange can be used. For verifying the invoice, QR codes on invoices will be mandatory as indicated by the IRB.
How can SNI help you?
SNI offers SAP add-on solutions for generating and transmitting qualified invoices between public authorities and private entities.
With SNI’s solution, extract taxpayers’ data from their accounting system and directly convert it into the required XML format. It is transmittable through the PEPPOL Network by Access Point Providers. SNI is already a PEPPOL access point.
